Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

TLDR

The rise of e‑commerce has increased the need for responsive omnichannel distribution, prompting companies to experiment with sharing‑economy models such as crowdsourced logistics, whose strategic role remains underexplored. The study aims to understand how crowdsourced logistics performs in terms of logistics effectiveness and to outline future research directions. Using a contingency theory lens, the authors simulate same‑day delivery from a distribution center to 1,000 customer locations in New York City under dynamic market conditions and compare the results to those of a traditional dedicated fleet of delivery drivers. The analysis suggests that firms can strategically benefit from crowdsourced logistics.

Abstract

The rise of e‐commerce over the past 20 years has created an increased need for responsive omnichannel distribution to meet the last mile challenge. Some companies are experimenting with the use of the sharing economy business model to augment distribution strategies. The use of so‐called “Crowdsourced Logistics” ( CSL ) is becoming more prevalent in practice, but the role in logistics strategy of this new phenomenon has not been thoroughly investigated and understood. Using a contingency theory lens, this research contributes a nascent understanding of how CSL performs in terms of logistics effectiveness by simulating same‐day delivery services from a distribution center to 1,000 customer locations throughout New York City under dynamic market conditions and by comparing the results to those of a traditional dedicated fleet of delivery drivers. The findings are analyzed to suggest how firms may find strategic benefit using CSL . An agenda for future research is provided to explore these strategic implications and to deepen knowledge about the CSL phenomenon.